How to Choose the Right HRIS Solution - HRIS Payroll Software
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How to Choose the Right HRIS Solution

By: Dave Rietsema
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HRIS, or Human Resources Information Systems, can be a valuable tool for human resources managers and the entire organization. HRIS can streamline the processes of compiling and filing information that is pertinent to the organization such as hiring and training data, performance reviews, and vacation or sick day tracking.

Having a high functioning HRIS in place can reduce labor costs and make a company more efficient as these crucial pieces of information become easier to manage. However, not all HRIS are created equal. It is important to take certain steps before selecting a HRIS so that the right HRIS solution is chosen.

Determine Needs

Browsing through different HRIS vendors without first determining the organizational needs is putting the cart before the horse. HRIS solutions come with many different features and not all features may fit in with the needs of the business. Purchasing the “top of the line” HRIS and then discovering that many of the features are not needed can be a huge waste of money and can waste employee time trying to sift through the programs.

On the other hand, purchasing a cost-effective HRIS with fewer features and then finding that many needed features are absent can also be unproductive. Listing all desired features in order of priority is a great way to begin the hunt for a new HRIS.

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Consult All Affected Parties

In most companies, both HR and IT will be affected by the new HRIS system. Other areas of the organization may also be impacted, depending on the company. It is important that all affected parties get a chance to voice needs and concerns prior to the selection of a new system. Not only will this help to determine needs and assist with the selection process, it will also increase the acceptance of the new system throughout all parts of the organization. Cooperation and acceptance throughout the entire organization can be valuable when it comes time to implement the new system.

Establish Budget

While the decision of which HRIS to choose should not be based solely on costs, the amount of capital that will be used to acquire and implement a new system should be determined prior to selection. When determining budget, the Total Cost of Ownership (TCO) should be considered.

The Total Cost of Ownership may include the initial price of the system, labor costs to implement the system, subscription costs, charges for software licenses, and costs to update the system in the future. The ROI should also be estimated and considered as an offset to these costs.

Talk to Vendors

It is helpful to acquire as much pertinent information as possible about vendors and different types of software before selecting a HRIS. The stability of vendors, the experience and length of time that the vendor has been in business, and the availability of tech support after the installation should all be established.

In regards to the software, it is important to determine who will own the data, what security measures are in place, and how easy the system will be to integrate with current systems. Companies may also benefit from establishing a good working relationship with vendors, and may consider the friendliness and professionalism of staff throughout the process of compiling information.

Accept Demo Offers

Most vendors will offer demos and these can be very helpful in choosing the right HRIS solution. When companies come in to present demos, employees from all areas of the organization that will be affected should attend. This will give professionals from different areas a chance to ask questions and will promote greater understanding of the software throughout the organization.

If a trial period is offered, companies can also benefit from taking advantage of the trial period to truly make sure that the selected HRIS is right for the company. Try and avoid making these common HRIS vendor demo mistakes too.

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